Correlation Between Univest Pennsylvania and KLA Tencor
Can any of the company-specific risk be diversified away by investing in both Univest Pennsylvania and KLA Tencor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Univest Pennsylvania and KLA Tencor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Univest Pennsylvania and KLA Tencor, you can compare the effects of market volatilities on Univest Pennsylvania and KLA Tencor and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Univest Pennsylvania with a short position of KLA Tencor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Univest Pennsylvania and KLA Tencor.
Diversification Opportunities for Univest Pennsylvania and KLA Tencor
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Univest and KLA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Univest Pennsylvania and KLA Tencor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLA Tencor and Univest Pennsylvania is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Univest Pennsylvania are associated (or correlated) with KLA Tencor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLA Tencor has no effect on the direction of Univest Pennsylvania i.e., Univest Pennsylvania and KLA Tencor go up and down completely randomly.
Pair Corralation between Univest Pennsylvania and KLA Tencor
Given the investment horizon of 90 days Univest Pennsylvania is expected to generate 0.88 times more return on investment than KLA Tencor. However, Univest Pennsylvania is 1.14 times less risky than KLA Tencor. It trades about 0.12 of its potential returns per unit of risk. KLA Tencor is currently generating about -0.05 per unit of risk. If you would invest 2,707 in Univest Pennsylvania on September 12, 2024 and sell it today you would earn a total of 495.00 from holding Univest Pennsylvania or generate 18.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Univest Pennsylvania vs. KLA Tencor
Performance |
| Timeline |
| Univest Pennsylvania |
| KLA Tencor |
Univest Pennsylvania and KLA Tencor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Univest Pennsylvania and KLA Tencor
The main advantage of trading using opposite Univest Pennsylvania and KLA Tencor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Univest Pennsylvania position performs unexpectedly, KLA Tencor can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in KLA Tencor will offset losses from the drop in KLA Tencor's long position.| Univest Pennsylvania vs. Waterstone Financial | Univest Pennsylvania vs. Mid Penn Bancorp | Univest Pennsylvania vs. ST Bancorp | Univest Pennsylvania vs. Republic Bancorp |
| KLA Tencor vs. Applied Materials | KLA Tencor vs. ASML Holding NV | KLA Tencor vs. Axcelis Technologies | KLA Tencor vs. Teradyne |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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